MjLink Cannabis Business News and Press

Following the recent discovery that more than half of the registered hemp fields tested in Southern Oregon are actually growing THC-rich cannabis, one county in the area has declared a state of emergency, as reported by Associated Press.

Jackson County officials report law enforcement officers and regulators are overwhelmed by the number of illegal cannabis farms in the area and have asked the governor and state legislature for help.

AP reports illegal cannabis farms have been found to steal water, creating a greater urgency in the Western U.S. where droughts have become more persistent.

Officials in Jackson County report many of these illicit growing operations are posing as legal hemp farms.

In July, The Oregon Liquor and Cannabis Commission (OLCC) adopted temporary rules to allow the agency to work with the Oregon Department of Agriculture (ODA) to test registered hemp fields across the state to determine if the farmers are growing legal hemp (containing less than 0.3% THC) or illegal cannabis (containing more than 0.3% THC). Farms with plants containing more than 5% THC were considered cannabis operations.

During the inspections, dubbed “Operation Table Rock,” inspectors found that out of test results available for 212 farms, 114 had tested as cannabis. 

The U.S. Postal Service (USPS) amended its "Hazardous, Restricted, and Perishable Mail" policy Oct. 20 to prohibit the mailing of any vaping product.

The USPS developed its final rule on the mailability of vapes to be in compliance with the Preventing Online Sales of E-Cigarettes to Children Act (POSECCA) signed into law by former President Donald Trump last year, which regulates the sale and delivery of electronic delivery systems (ENDS)

According to the bill text, POSECCA strictly:

Although the final rule specifically bans ENDS—making the legislation appear to be specific to nicotine products—Congress uses the term to describe all vaping products, making cannabis, CBD and hemp products fit in the category of what lawmakers banned, according to the final rule.

The Public Pushes Back

The USPS received over 15,700 public comments on the proposed regulations, according to the final rule. Some feedback included commenters requesting that the agency provide an alternative method for regulating these products or making certain exceptions, as well as asking for an extension of the effective date.

As Rhode Island lawmakers get closer to reaching an agreement on an adult-use cannabis legalization proposal, the conversation is turning toward what kind of regulatory body will oversee the marketplace, according to a local WPRI report.

State Sen. Josh Miller, who sponsored an adult-use cannabis bill that cleared the Rhode Island Senate in June, told the news outlet that lawmakers are debating whether to establish a new cannabis commission to regulate the adult-use market, or whether the adult-use industry should fall under the authority of the Rhode Island Department of Business Regulation, which oversees the state’s medical cannabis program.

Lawmakers have already reached agreements on other provisions in the legislation, WPRI reported, such as licensing 30-40 adult-use cannabis dispensaries instead of the 150 retailers outlined in Miller’s original bill.

Miller told the news outlet that lawmakers have also agreed on expungement provisions, as well as a social equity component to the business licensing process.

The Rhode Island Legislature and governor’s office have been working on the adult-use cannabis legalization proposal for months, according to WPRI, after Miller's legislation stalled at the end of last year’s legislative session.

A new budget bill could allow Washington, D.C. to launch legal cannabis sales.

The Harris Rider, which has been included in budget legislation for the past seven years, has blocked the city government from regulating adult-use sales, but that language has been omitted from this year’s Senate appropriations bill, according to Forbes.

Washington, D.C. voters legalized the personal cultivation and possession of cannabis in 2014, the news outlet reported, but Congress has since used budget legislation to bar the city government from legalizing commercial adult-use sales.

RELATED: D.C. Gears Up for Adult-Use Cannabis Sales

The Harris Rider, named for its author, Maryland Republican Rep. Andy Harris, prohibits D.C. from legalizing and regulating adult-use cannabis, although the city launched legal medical cannabis sales in 2013, according to Forbes.

BOCA RATON, Florida, Oct. 21, 2021 - PRESS RELEASE - Jushi Holdings Inc., a vertically integrated multi-state cannabis operator, announced that it has entered into definitive documentation in respect of a U.S. $100 million Senior Secured Credit Facility (the acquisition facility) from a portfolio company of SunStream Bancorp Inc. (Sunstream), a joint venture sponsored by Sundial Growers Inc. Jushi intends to initially draw U.S. $40.0 million from the acquisition facility to fund the cash portion of the recently completed acquisition of Nature’s Remedy of Massachusetts Inc. (Nature’s Remedy) and certain of its affiliates. Additionally, the company will consider borrowing future amounts under the acquisition facility for potential strategic expansion opportunities in its core and developing markets.

"Securing non-dilutive funding from Sunstream strengthens our balance sheet and positions us to aggressively pursue our national growth plans," said Jim Cacioppo, Jushi chief executive officer, chairman and founder. "This increased financial flexibility will allow us to continue our ongoing expansion efforts in existing markets such as Nevada, Illinois, Ohio and California, and pursue new, potential target markets such as New Jersey, Maryland, and other high-growth regions. We remain focused on identifying strategic opportunities to bolster our operations across the supply chain, with a view to fostering long-term value for our shareholders."

After being drawn, loans issued under the acquisition facility will bear an interest rate of 9.5% per annum, payable quarterly, and mature five years from the closing date. Jushi will be able to make draws under the facility for 18 months and will have a two-year interest-only period before partial amortization begins quarterly. Jushi also holds the ability to increase the total commitment of the acquisition facility by an aggregate amount of up to $25 million, subject to certain conditions of the agreement. The acquisition facility is secured by a first lien over certain company assets and on a pari passu basis with current senior indebtedness on existing assets that are collateralized under Jushi's current senior debt facility.

Further details on the credit facility can be found in Jushi's documents filed under the company's profile on SEDAR at www.sedar.com.

DENVER, Oct. 21, 2021 /CNW/ - BellRock Brands Inc., a cannabis multi-state house of brands, today announced that the company has entered into a licensing agreement with Curio Wellness to manufacture and distribute its iconic Mary's Medicinals line to cannabis retailers in Maryland. Curio Wellness, Maryland's market-leading health and wellness company, already manufactures and distributes BellRock's Dixie line of cannabis-infused products. BellRock anticipates that Mary's products, including its Transdermal Patches, Transdermal Gel Pen, Transdermal Compounds and Muscle Freeze, will become available through Curio Wellness during the first quarter of 2022.

Founded in 2013 with the goal of transforming how people view and utilize cannabis, Mary's Medicinals is known for its innovative delivery methods and robust library of intellectual property including a U.S. patent for its acclaimed transdermal technology. In August 2021, BDSA named Mary's Medicinals as the Best-Selling Cannabis Brand in the Topicals Category for 1H 2021.

"We are very pleased to announce an exclusive partnership with Curio Wellness in Maryland," said BellRock President Brian Jansen. "Curio Wellness' history perfectly aligns with the mission and values of Mary's Medicinals. Both companies share an unrelenting commitment to quality, science, and innovation. By unifying Mary's and Dixie under one roof in Maryland, we will benefit from resulting company synergies and expand distribution in the state."

Curio Wellness will manufacture the Mary's Medicinals line in its new, 34,000-square-foot, state-of-the-art processing facility in Timonium, Md. Among the largest in the country, Curio Wellness' facilities are the only in the state whose products meet cGMP standards, the same quality standard set for the world's leading pharmaceutical companies to ensure that consumer products meet the most stringent quality and efficacy guidelines.

"Mary's Medicinals has always been on our radar, lauded for its solid reputation and patient-first mentality. The brand has stood the test of time and has continued to innovate to reimagine wellness for patients," said Michael Bronfein, CEO of Curio Wellness. "We look forward to adding Mary's to the Curio Wellness family and further enhancing and diversifying our offerings to better meet patients' needs."

A cannabis researcher who has fought against the U.S. Drug Enforcement Administration (DEA) has a new battle to fight after Bank of America closed her institute’s account.

Dr. Sue Sisley, president of Scottsdale Research Institute (SRI), has been conducting FDA-approved trials to evaluate cannabis as a medical treatment for military veterans and terminally ill patients. She took to Twitter Oct. 15 to share that Bank of America closed the institute’s account, potentially threatening the future of her study.

“Bank of America closes down account of Federally-licensed cannabis researcher,” Sisley wrote. “SRI conducts FDA approved controlled trials evaluating cannabis as medicine for treating pain/PTSD in military veterans & terminally ill patients this TRAGICALLY shuts down our research.”

RELATED: Cannabis Conference 2021 Keynote: 'Sue‘n The DEA: The Story of a Cannabis Research Breakthrough'

The bank notified Sisley in an Oct. 12 letter that it would be closing the account, according to a Law360 report. Bank of America directed SRI to stop writing checks and to cancel any recurring payments within three weeks.

The Texas Department of State Health Services (DSHS) has added a statement to its website declaring that delta-8 THC is illegal under state law.

“Texas Health and Safety Code Chapter 443 (HSC 443), established by House Bill 1325 (86th Legislature), allows Consumable Hemp Products in Texas that do not exceed 0.3% Delta-9 tetrahydrocannabinol (THC),” the website reads. “All other forms of THC, including Delta-8 in any concentration and Delta-9 exceeding 0.3%, are considered Schedule I controlled substances.”

Until now, businesses have sold products containing the compound under a grey area of the law, according to the Dallas Observer.

Gov. Greg Abbott signed H.B. 1325 into law in 2019, after the 2018 Farm Bill federally legalized industrial hemp, to legalize the cultivation of hemp that contains less than 0.3% delta-9 THC in Texas. The law did not specifically address delta-8, however, and manufacturers have since ramped up the production of delta-8 products under the assumption that it is legal in Texas, the Dallas Observer reported.

Now that the DSHS has clarified its stance and declared delta-8 a Schedule I controlled substance, this grey area of the law has been eliminated.

South Dakota lawmakers advanced an adult-use cannabis legalization proposal Oct. 19 as the state’s Supreme Court continues to consider whether Constitutional Amendment A, which voters approved in the 2020 election, is valid.

 Amendment A passed with a 54.2% majority, but has been challenged in a lawsuit alleging that the measure violates South Dakota’s one-subject rule and does not simply amend the state constitution, but instead revises it. The revision, therefore, would require a constitutional convention to be called for by a three-fourths vote of members from both chambers of the South Dakota Legislature.

The voter-approved measure was previously ruled unconstitutional by a circuit judge before the case headed to the Supreme Court.

While the case remains pending, the Adult-Use Marijuana Study Subcommittee has been studying adult-use legalization in South Dakota since June, according to an AP News report. The subcommittee voted Oct. 19 to recommend a bill that would allow adults 21 and older to purchase up to 1 ounce of cannabis for personal use.

The legislation would also eliminate criminal charges for the possession of up to 4 ounces, but would ban public cannabis consumption, AP news reported.

Last month, President Joe Biden announced sweeping new COVID-19 vaccination requirements that will impact countless businesses and employees across the country, and the cannabis industry is no exception.

Biden said Sept. 9 that all employers with more than 100 employees must require their workers to be vaccinated or undergo COVID-19 testing weekly, as reported by AP News. The administration’s mandate also requires all executive branch employees and contractors who work with the federal government to be vaccinated, with no option for regular tests.

The Occupational Safety and Health Administration (OSHA) is expected to issue a rule in the coming weeks to implement the requirement for larger companies to mandate vaccinations or weekly COVID-19 testing.

“OSHA is going to draft that rule, and it’s what they call an ETS, an emergency temporary standard,” Ruth Rauls, partner at Saul Ewing Arnstein & Lehr, tells Cannabis Business Times and Cannabis Dispensary. “It allows them to put it into place without having a review and comment period, which is usually what happens. That ETS is going to come out sometime in the next couple of weeks, so there’s been a lot of speculation as to what that’s actually going to mean and all the questions that come along with it.”

OSHA sent a draft rule to the White House last week for review, Rauls says, but it is unclear when the rule will be approved and implemented. Once a formal regulation is issued, employers will have more guidance on what they need to do moving forward, and Rauls said cannabis companies are no different from businesses in other industries when it comes to compliance.

OTTAWA, Oct. 20, 2021 (GLOBE NEWSWIRE) -- HEXO Corp. has announced Scott Cooper as HEXO's new president and CEO, effective immediately. Cooper joins HEXO from Truss Beverage Co., a joint venture between Molson-Coors Canada and HEXO, where he served as president and CEO.

"It's my great pleasure to welcome Scott as our new president and CEO,” said Dr. Michael Munzar, chairman of HEXO's Board of Directors. “Scott's two decades of experience in consumer-packaged goods, his success in launching and growing Truss' innovative portfolio to be the Canadian market leader in cannabis beverages, and experience working in the United States position him well to defend HEXO's position as a market leader in Canada and secure our place as a top-three global cannabis products company."

Scott's strong experience with Truss, Molson-Coors, and several other publicly traded consumer packaged goods companies, makes him exceptionally well-positioned to integrate HEXO's recent acquisitions and leverage solid brands, robust product offering and its lean production capabilities, to lead the company through its next phase of its strategic evolution.

"Without question, HEXO presents one of the most exciting opportunities in the cannabis industry. I look forward to working with the team to build upon the strong foundation already built, particularly through the company's recent acquisitions and to drive growth and profitability through the efficient commercialization of cannabis consumer packaged goods," said Cooper. "I want to thank outgoing CEO Sebastien St-Louis for his tremendous effort in establishing growth and delivering a solid position from which the company can move forward."

For an interim period not to exceed 6 months, Cooper will continue simultaneously in his current role as CEO of Truss Beverages to ensure a smooth transition for the business.

The inadequacies of the “indica” and “sativa” labels have long been discussed and debated in the cannabis market. With the advent of a booming legal industry, those terms are more scrutinized than ever before—and yet they are still widely used for marketing purposes. Indica strains leave the user feeling relaxed and sleepy, as the lore has it, has sativa strains provide the user a refreshing burst of energy and creativity.

It sounds enticing as a roadmap for cannabis experiences. But it falls short of reality.

Dr. Sean Myles and his co-authors confirmed as much with their research paper, published in Nature Plants, which examines whether that indica-sativa dichotomy matches what users might experience with different chemovars. 

After analyzing 297 samples provided by Bedrocan International in the Netherlands, Myles and the Dalhousie University team determined that “Sativa- and Indica-labelled samples were genetically indistinct on a genome-wide scale.” The flower samples were tagged with labels along a five-point scale, such as one might see in a licensed dispensary: indica, indica-dominant, hybrid, sativa-dominant, sativa. 

Genetic testing revealed that those terms don’t correlate in any meaningful way with the effect of the plant’s chemistry.

“All we're doing in our study is demonstrating the degree to which these labels are good predictors of what's in your package.,” Myles said in a phone interview. “What are you actually getting? The answer is they're terrible predictors. It is not uncommon to get one sativa one week, and the next week you go to get [a] sativa [strain] because you liked it, but it's chemically and genetically more similar to things labeled indica.”

BOCA RATON, Florida, October 18, 2021 - PRESS RELEASE - Jushi Holdings Inc., a vertically integrated multi-state cannabis operator, announced the appointment of Edward (Ed) Kremer as the company's chief financial officer (CFO). Kremer brings over 20 years of financial leadership experience across various industries, including technology, fashion, manufacturing, wholesale distribution, licensing and retail.

Kremer most recently served as chief operating and restructuring officer of Le Tote and Lord & Taylor, overseeing the organization's M&A and restructuring efforts. Before his time at Le Tote and Lord & Taylor, he held several executive leadership and finance roles with public and private equity-backed leading consumer products companies, most notably Oakley, Oliver Peoples, Beats Electronics (Beats by Dr. Dre), Noon Home and 360fly.

In his new role, Kremer will report to Jushi's CEO, chairman and founder, Jim Cacioppo. He will be responsible for overseeing the company's accounting and finance departments, while leading financial strategies and acting as a key business partner to the senior leadership team. Jushi will seek regulatory approval, as necessary, to effectuate Kremer's role and responsibilities in the various jurisdictions where Jushi is, or will become, licensed as a cannabis operator.

"I am pleased to welcome Mr. Kremer to our leadership team," Cacioppo said. "As we continue to position Jushi for the future, his passion for the cannabis industry, strong leadership, and extensive experience in driving financial and operational improvements is expected to have an immediate positive impact on our company. I am confident Ed will be an excellent addition to our team as we continue to organically grow and strategically target inorganic opportunities."

"I am thrilled to join the Jushi team at such a critical time of growth for the company," Kremer said. "As we continue to execute on Jushi's vision, strategies and financial priorities, I look forward to partnering with the entire team to build on the company's strong momentum and bring added value to our shareholders and customers."

Jushi also announced that Kimberly Bambach has stepped down from her role as CFO effective immediately. Ms. Bambach will remain with the company in a support role through Dec. 1 2021, and as a consultant to the company for an additional four months to ensure a continued smooth transition.

The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) has proposed new lighting efficiency standards for greenhouse and indoor controlled environment agriculture (CEA), updating Standard 90.1, the original energy-efficient requirements submitted in 2019.

According to a media advisory from the ASHRAE, the proposed regulations are similar to California’s recently adopted energy codes, which will go into effect for select cannabis operations beginning Jan. 1, 2023.

RELATED: California Proposes New Greenhouse Energy Codes

If the updated requirements are adopted by ASHRAE, they will only apply to newly constructed greenhouses or CEA facilities, additions to greenhouses or CEA facilities, and lighting alterations that replace 10% or more of horticultural luminaries in an enclosed space—only the newly installed lights must meet the updated requirements; lamp replacements are not considered an alteration, the advisory states.

The proposed code requirements are listed in the advisory as follows:

Horticultural Lighting Minimum Efficacy (indoor CEA lighting):

SANTA CRUZ, California, October 19, 2021 -- PRESS RELEASE -- Cultivation Warehouse (CW), an agrotechnology solutions provider, is launching a program, along with AMCON Green, an MEP and building design firm, to reward social equity programs across the country with up to $1.25 million in products and services necessary to launch or optimize a regulated commercial cannabis cultivation operation.

CW has pledged up to $1 million, and AMCON will provide up to $250,000 in professional services at no cost.

To be eligible for consideration, projects need to be verified or in the process of being verified as a "social equity" business by their governing jurisdiction, have secured a site and provide a written plan that can be implemented within 12 months.

To apply or for more details, click here.

Selected new or existing social equity cannabis cultivation projects will receive awards ranging from a minimum of $25,000 up to $250,000 worth of a wide range of services, including site design with detailed mechanical, electrical and plumbing schematics and equipment specs, regulatory compliance consulting, procurement, installation, and other assistance for all types and sizes of commercial cannabis operations in the U.S.

In making the announcement, Cultivation Warehouse principals Eric Paulin and Eric Shedlarski said, "We owe our success to the partnerships we've developed with many of the pioneers in cannabis cultivation. We've witnessed the harm caused by cannabis prohibition, and we're hopeful that this commitment of resources will help mitigate some of that and expand diversity within the cannabis industry."

The Alabama Medical Cannabis Commission is scrapping a plan that could have allowed medical cannabis business licensing—and sales—to begin as early as next year.

The commission said last month that it was considering asking lawmakers to allow for cultivation to begin at an earlier date than is outlined in Alabama’s medical cannabis law. The current statute requires the state to begin accepting business license applications by Sept. 1, 2022, but commissioners were reportedly in discussions with legislators to allow cultivators to be licensed sooner, in early 2022.

Now, commissioners have decided not to push for an earlier date, according to a Montgomery Advertiser report.

“At this point in time, we decided not to ask the Legislature to go back into digging up a legislative bill and opening it back up,” Alabama Medical Cannabis Commission Vice Chair Rex Vaughn told the news outlet. “We could lose what we’ve got.”

Instead, the commission will focus on rulemaking and physician training, Vaughn said.

The Oklahoma Medical Marijuana Authority (OMMA) has issued a patient advisory after a medical cannabis product tested positive for THC-O-acetate.

The OMMA said its lab, Metis, detected the compound in a concentrate called Platinum OG, according to a local KFOR report.

State officials said THC-O-acetate has been shown to be harmful when added to other THC-containing products, and that the combination could lead to side effects such as seizures, difficulty speaking and vomiting, the news outlet reported.

RELATED: THC-O Acetate Q&A with Dr. Ethan Russo: ‘Don’t Go There'

In a follow-up report, KFOR said OMMA is now looking into how the compound got into the batch of medical cannabis, as well as how many batches may be affected.

After a failed attempt to delay South Dakota’s voter-approved medical cannabis program, Gov. Kristi Noem used taxpayer dollars to advertise that she’s “100 percent committed” to the program.

The 60-second advertisement, which ran June through September, featured the Republican governor in a public-service announcement setting.

Noem, who campaigned against the voter-approved ballot measure last year, and then unsuccessfully advocated for the South Dakota Legislature to amend and delay implementing the program, offered a different tone in the taxpayer-funded advertisement.

“The medical cannabis program is on schedule,” she said. “And we’re working to implement a responsible program that follows the direction given by the voters. … I’ve heard from people who are hurting and are hopeful for relief. I can assure them that we are working hard to streamline the process to get medical cards out to people. And my team is 100 percent committed to starting this program as quickly and as responsibly as possible for South Dakota.”

The ad was funded through $322,500 of amendments to the state Department of Health’s contract with Imagine Agency LLC, of Rapid City, as first reported by KELOLAND Media Group.

The one-year contract that was issued June 1, 2021, was originally for Imagine Agency to design, plan and execute South Dakota’s Opioid Abuse and Misuse Prevention Plan communications and marketing for $375,000, which was funded through a federal grant.

Once regarded as a fringe technology, light-emitting diodes (LEDs) have supplanted high-pressure sodium (HPS) and metal halide (MH) lighting fixtures as the most popular in the commercial cannabis cultivation industry, according to new data from Cannabis Business Times’ “State of the Cannabis Lighting Market” report.

Produced with support from Fluence by OSRAM, the 2021 “State of the Cannabis Lighting Market” study found that the majority of commercial cannabis cultivators growing under mixed or artificial lighting have LED fixtures in propagation, vegetation and flowering rooms. HPS lights, which in 2016 were the most commonly used fixtures (adopted by 62% of growers), are now in use with just over one-third (37%) of growers.

“LED adoption is expected to continue to rise as growers strive for further efficiencies, whether to maximize profitability, comply with state energy use regulations, or both,” according to the report. “Of the research participants who currently do not leverage LED fixtures in flowering, 63% indicated they are planning to use or are considering using LEDs in the flower cycle within the next 12 months.”

Industry groups advocating for sustainable cannabis production and resource use, such as the Resource Innovation Institute (RII), say market conditions are ripe for LED growth to continue.

“A combination of factors is creating a perfect storm to motivating cultivation operations to adopt LEDs: energy efficiency, productivity, choice, pricing, utility programs, regulations, and transparency,” said Gretchen Schimelpfenig, Technical Director for RII, in a statement to CBT.

Data collected by RII through its Cannabis PowerScore platform, a free resource-benchmarking tool, “shows how facilities using LED for any stage of plant growth can achieve 19% better electric energy efficiency while also getting 53% higher yields per unit of electricity,” Schimelpfenig added.

U.S. growth capital provider Measure 8 Venture Partners is lead investorCuraleaf Executive Chairman Boris Jordan joins boardInvestment ushers in new era of “natural based medicine“Showcases Germany as the leading European market for medical cannabis

FRANKFURT, Germany, Oct. 18, 2021 – PRESS RELEASE – Bloomwell Group has successfully closed a seed funding round of over $10 million dollars—the highest publicly known seed investment for a European cannabis company to date. The lead investor is U.S. growth capital provider Measure 8 Venture Partners, specialists in cannabis industry investments. Among other investors, business angel Dr. Reinhard Meier is investing again through his Venture Capital Investors fund; and Philipp Weber of FPS acted as legal adviser to Bloomwell.

Concurrent with the announcement, Bloomwell Group, which includes Algea Care, Europe's leading telemedicine company for medical cannabis in terms of patient numbers, is repositioning itself as a holding company, allowing it to build, invest or acquire cannabis companies.

"With Bloomwell, we are revolutionizing health care through digitalization and the potential of medical cannabis as well as other natural medicines,” Bloomwell co-founder and CEO Niklas Kouparanis said. “Our portfolio companies will radically focus on a consumer-centric approach along the entire value chain of medical cannabis, with the exception of cultivation. The era of natural-based medicine begins now and Bloomwell is taking the lead."

Within a year, Bloomwell Group has grown to 160 employees, with projected revenues of 5 million euros in 2021. In addition to Kouparanis, CEO, entreprenuer and cannabis pioneer, the board is strengthened by telemedicine veteran Meier, who as founder, led Teleclinic to an exit, co-founder Samuel Menghistu and Boris Jordan, founding partner of Measure 8 Venture Partners. 

The accomplished board covers facets in medicine, digitalization, cannabis, investment and brand building across various market sectors.